SERVICE

SERVICE MARKETING
 It is a managerial process of managing the service.
 It is an organized effort for providing a sound
foundation for the development of an organization.
 It is a social process helping an organization to
understand the emerging social problems and to take
part in the social problems and to take part in social
transformation process justify its existent.
MEANING OF SERVICE
 ACCORDING TO PHILIP KOTLER: A service is an act
or performance that one party can offer to another that
is essentially intangible and does not result in the
ownership of anything. Its production may or may not
be tied to a physical product.
CHARACTERISTICS OF SERVICE
 INTANGIBILITY: Can’t see, cant touch, cant feel.
 HETEROGINIETY: Time consumed in delivery and
quality values.
 INSEPERABILITY: Service are Produced, distributed,
and consumed simultaneously.
 PERISHIBILITY: Lack of inventory
DIFFERENCE B/W GOODS AND
SERVICE
 Tangibility
 Transfer of ownership
 Perishability
 Heterogeneity
 Re-Selling
 Production-consumption
 Customer Relationship
 Marketing mix
 Customer involvement
 Production
SERVICE MARKETING TRIANGLE
Company

Internal marketing External marketing

Interactive marketing
INTERNAL MARKETING
 Internal marketing is critically important in a service
industry. The unique characteristics of service,
specifically the characteristic of inseparability
emphasizes that employees are part of the product.
BENEFITS OF INTERNAL
MARKETING
 IN EMPLOYEE PERSCRIPTION:
1. Encourages the internal market to perform better.
2. Empowers employees and gives them accountability
and responsibility.
3. Creates common understanding of the business
organization.
4. Improves customers retention and individual
employee development.
ROLE OF INTERNAL MARKETING
 Management of change
 Building corporate image
 Strategic internal marketing
EXTERNAL MARKETING
 External marketing efforts that the firm engages in to
set up its customers expectations and make promises
to customers regarding what is to be delivered.
 Its involve pricing strategy, promotional activities and
all communication with customers.
PROMOTION MIX FOR EXTERNAL
MARKETING
 Advertising
 Personal selling
 Sales promotion
 Publicity and public relations
 Direct marketing
INTERACTIVE MARKETING
METHODS
 The purpose of interactive communication is to know
more about the customer. Interactive communication
helps in assembling information about customer
preferences and purchasing behavior. Its provide
information about;
 Profile of the customer
 Purchase made
 Quantity purchased
SERVICE MARKETING
MIX/AUGMENTED SERVICE MIX
 ACCORDING TO STATON: The marketing mix is the
term used to describe the combination of the inputs
which constitute the core of a company marketing
system-the product, the price structure, the
promotional activities and the distribution system.
Cont…
 Product
 Price
 Place
 Promotion
 People
 Physical evidence
 Process
GAP MODEL OF SERVICE QUALITY
1. Not knowing what customers expect.
2. Inability to set the right type of standards
3. Not delivering to service standards
4. Mismatch between promises and performance
GAP-1 MODEL
 No direct interaction with customers
 Unwilling to ask customers about expectations
 Unpreparedness to address the expectations
 Lack of market segmentation to understand the needs
of each segments
GAP-2 MODEL
 Absence of customer driven standards of service
delivery
 Absence of formal quality control goals
 Vague or undefined service design
GAP-3 MODEL
 Lack of right type of employees or their training in
service delivery
 Lack of empowerment of the employees
 Lack of training to the franchisee’s staff
 Failure to predict
 Insufficient customer education
GAP-4 MODEL
 Unrealistic communication to customers
 Over promising through advertisement or personal
selling
 Lack of internal communication
CONSUMER BEHAVIOUR IN
SERVICE
MEANING OF CONSUMER BEHAVIOUR: Consumer
buying behavior refers to the buying behavior of final
consumers-individuals and households who buy
goods and services for personal consumption.
ACCORDING TO SOLOMON: Consumer behavior is
the process involved when individuals or groups
select, purchase, use or dispose of
products,services,ideas or experiences to satisfy needs
and wants.
Search,expeariance, and credence
property
 SEARCH: Attributes that a consumer can determine before
the purchase. Physical goods tend to emphasizes those
attributes that allow customers to evaluate a product
before purchasing it.
 EXPEARIANCE: Attribute that a consumer can determine
only after the purchase. When attributes cannot be
evaluated prior to purchases, customer must experience
the service to know what they are getting.
 Credence : Attributes that consumer may find impossible
to evaluate even after purchase and consumption. product
characteristics that customer find impossible to evaluate,
confidently even after purchase and consumption are
known as credence attributes.
Consumer expectations of service:
 Consumer expectations are beliefs about service
delivery that function as standards or reference points
against which performance is judged. Because
customers compare their perceptions of performance
with these reference points when evaluating service
quality through knowledge about customer
expectations is critical to service marketers.
TWO LEVELS OF CUSTOMER
SERVICE EXPECTATIONS
 Desired service expectations
 Ideal expectations
Normative expectations
• Adequate service expectations
Experience based expectations
Acceptable expectations
Minimum tolerable expectations
ZONE OF TOLORENCE
 Service are heterogeneous in that performance may
vary across providers, across employees from the same
provider, and even with the same service employee.
 An individual customer’s zone of tolerance increase or
decrease depends on a number of factors which
include company-controlled factors such as price
 When prices increase, customer tend to be less
tolerant of poor service.
ZONE OF TOLORENCE
DESIRED SERVICE

ADEQUATE SERVICE
 FACTORS INFLUENCING CUSTOMER
EXPECTATIONS IN SERVICE
• Sources of desired service expectations
Personal needs
Enduring service intensifiers
• Sources of adequate service expectations
Transitory service intensifiers
Perceived service alternatives
Customers self perceived service role
Situational factors
Predicted services
• Source of both desired and predicted service expectations
Cont….
Explicit service promises
Implicit service promises
Word of mouth communication
Past experience